Comment

Comment by throwaway2048

There is a massive negative externality for allowing scammers to run free in a situation where the upfront ability to assess fitness-of-goods is lacking.

https://en.wikipedia.org/wiki/The_Market_for_Lemons

the money quote being

    The cost of dishonesty, therefore, lies not only in 
    the amount by which the purchaser is cheated; the 
    cost also must include the loss incurred from 
    driving legitimate business out of existence.

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